Mobile Infrastructure (BEEP) - 2024 Q2 - Quarterly Report

Revenue Performance - Total revenues for the three months ended June 30, 2024, increased by 28.4% to $9.3 million compared to$7.2 million in the same period in 2023, primarily due to the conversion of 27 assets to management contracts[110] - Managed property revenue reached $7.2 million, representing 100$12,727,000, a 100.0% increase compared to the same period in 2023[116] - Total revenues increased by $3,776,000, or 26.4$18,093,000 for the six months ended June 30, 2024, primarily due to 27 of 42 assets converting to management contracts[117] Operating Expenses - Total operating expenses increased by 22.6% to $8.9 million from$7.3 million in the prior year, driven by the conversion to management contracts[111] - Total operating expenses for the six months ended June 30, 2024, were $18,279,000, an increase of$3,499,000, or 23.7%, compared to the same period in 2023[118] - Property operating expenses rose significantly to $3,345,000 for the six months ended June 30, 2024, compared to$1,051,000 in the same period in 2023[120] - General and administrative expenses rose by $0.5 million, or 19.0$863,000, or 17.0%, to $5,926,000 for the six months ended June 30, 2024, primarily due to non-cash compensation costs and increased payroll[121] Interest and Debt - Interest expense decreased by 16.0$3.1 million from $3.7 million, attributed to the repayment of$9.9 million in mortgage loans and $15.0 million on the Revolving Credit Facility[115] - Interest expense decreased by approximately$1,210,000, or 16.6%, to $(6,066,000) for the six months ended June 30, 2024, due to the repayment of mortgage loans[124] - The company has$93.1 million of debt maturing within twelve months, including $58.7 million related to the Revolving Credit Facility and$34.4 million of notes payable, raising substantial doubt about its ability to continue as a going concern[136] Net Income and Loss - The company reported a net loss of $(5,458,000) for the six months ended June 30, 2024, compared to a net loss of$(7,049,000) in the same period in 2023[131] - For the six months ended June 30, 2024, the company reported a net loss of $5.458 million, compared to a net loss of$7.049 million for the same period in 2023, representing a 22.5% improvement[134] Cash Flow - Cash used in operating activities for the six months ended June 30, 2024, was $(1.011) million, an improvement from$(2.221) million in the same period of 2023[146] - The cash used in financing activities for the six months ended June 30, 2024, was $(1.880) million, compared to$(2.934) million in the same period of 2023[146] Future Plans and Risks - The company plans to convert the remaining assets to asset management contracts by the end of 2027, with additional conversions expected in 2024[109] - The company anticipates a hybrid work structure will become the norm, impacting the performance of assets located in urban centers[108] - The company faces risks including increased fuel prices, competition in the parking industry, and potential difficulties in accessing financing[99] - The company identified a pipeline of acquisition opportunities valued at approximately $300 million, although it is unlikely to pursue additional acquisitions until more favorable financial market conditions arise[140] Other Financial Metrics - Net Operating Income (NOI) for the six months ended June 30, 2024, was$11,035,000, a 13.0% increase compared to $9,768,000 in the same period in 2023[131] - Adjusted EBITDA attributable to the company for the six months ended June 30, 2024, was$7.735 million, up from $7.024 million in 2023, reflecting a 10.1$964,000 during the six months ended June 30, 2024[124] - The company impaired approximately $157,000 of real estate assets during the six months ended June 30, 2024, due to a planned property disposition[123] Dividends - The company has accrued unpaid dividends of approximately$0.7 million for Series A Preferred Stock and $9.2 million for Series 1 Preferred Stock as of June 30, 2024[142] - The company suspended the payment of distributions on common stock in March 2018, with no assurance of resuming in the future[141] Refinancing Activities - The company executed a refinancing of$5.5 million of notes payable in February 2024, converting it into a 5-year note for $5.9 million[137] - The company expects to execute refinancing options for its Revolving Credit Facility in 2024, although the finalization of these options is not fully within its control[137]